Sale Agreement And Construction Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Sale Agreement And Construction Agreement

"I need a Sale Agreement And Construction Agreement for a commercial warehouse project in Riyadh Industrial City, where my company will purchase the land and engage the same contractor to build a 50,000 square meter facility, with construction to commence in March 2025."

Document background
The Sale Agreement And Construction Agreement is utilized when a party wishes to both purchase property or materials and engage a contractor for construction works in Saudi Arabia. This combined agreement streamlines the transaction by incorporating both elements into a single comprehensive document, ensuring consistency and reducing potential conflicts between separate agreements. It is particularly relevant for development projects where the purchase of land or materials is intrinsically linked to the construction phase. The document must comply with Saudi Arabian law, including the Commercial Courts Law, Civil Transactions Law, and Saudi Building Code, while adhering to Sharia principles. It includes detailed provisions for property transfer, construction specifications, payment terms, quality standards, testing requirements, and dispute resolution mechanisms. The agreement is structured to protect both parties' interests while ensuring smooth project execution in accordance with Saudi Arabian regulatory requirements.
Suggested Sections

1. Parties: Identifies and defines all parties to the agreement, including their legal status, registration details, and addresses

2. Background: Sets out the context of the agreement, including the project overview and parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Sale Terms: Details the terms of the sale component, including property/materials description, pricing, and payment terms

5. Construction Scope: Detailed description of construction works to be performed

6. Project Timeline: Construction schedule, milestones, and completion dates

7. Price and Payment: Comprehensive payment terms, including payment schedule, method, and currency

8. Contractor Obligations: Details the responsibilities and obligations of the contractor

9. Client Obligations: Outlines the responsibilities and obligations of the client

10. Quality Standards: Specifies construction standards, materials quality, and workmanship requirements

11. Variations: Procedures for handling changes to scope or specifications

12. Testing and Commissioning: Requirements for testing and commissioning of completed works

13. Defects Liability: Terms regarding defects liability period and remediation process

14. Insurance and Indemnities: Insurance requirements and indemnification provisions

15. Force Majeure: Provisions for handling unforeseen circumstances and their impact

16. Termination: Grounds and procedures for contract termination

17. Dispute Resolution: Procedures for resolving disputes, including applicable law and jurisdiction

18. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Environmental Compliance: Required when project has significant environmental impact or requires specific environmental permits

2. Security: Include when performance bonds or other security measures are required

3. Government Approvals: Necessary when project requires specific government permits or approvals

4. Subcontracting: Include when subcontractors will be involved in the project

5. Technology Transfer: Required when project involves transfer of technical knowledge or intellectual property

6. Local Content Requirements: Include when project must comply with Saudi Arabian local content requirements

7. Site Access and Security: Important for projects where site security is a significant concern

8. Utilities and Services: Required when arrangement for utilities during construction needs specific attention

Suggested Schedules

1. Schedule 1 - Property Details: Detailed description of the property or site, including legal description and plans

2. Schedule 2 - Construction Specifications: Detailed technical specifications for the construction works

3. Schedule 3 - Bill of Quantities: Itemized list of materials, quantities, and prices

4. Schedule 4 - Construction Program: Detailed project timeline with milestones and critical paths

5. Schedule 5 - Payment Schedule: Detailed breakdown of payment terms, installments, and milestone payments

6. Schedule 6 - Required Insurances: List of required insurance policies and coverage amounts

7. Schedule 7 - Forms of Certificates: Templates for various certificates including completion certificates

8. Schedule 8 - Key Personnel: List of key personnel from both parties involved in the project

9. Appendix A - Drawings: Technical drawings and designs for the construction

10. Appendix B - Permits and Licenses: Copies of relevant permits and licenses

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Construction

Infrastructure Development

Commercial Property

Industrial Development

Residential Development

Manufacturing

Energy & Utilities

Healthcare

Education

Retail

Hospitality

Relevant Teams

Legal

Construction

Project Management

Commercial

Finance

Procurement

Operations

Technical

Risk Management

Property Development

Compliance

Engineering

Relevant Roles

Chief Executive Officer

Managing Director

Construction Manager

Project Director

Legal Counsel

Contract Manager

Property Developer

Development Director

Procurement Manager

Commercial Director

Finance Director

Risk Manager

Operations Manager

Technical Director

Site Manager

Quantity Surveyor

Architect

Chief Engineer

Industries
Commercial Courts Law of Saudi Arabia: This law governs commercial transactions and disputes in Saudi Arabia, providing the legal framework for business contracts including sale and construction agreements
Civil Transactions Law: Covers the basic principles of contract formation, obligations, and rights of parties in civil and commercial transactions in Saudi Arabia
Saudi Building Code (SBC): National building code that sets standards and requirements for construction projects, ensuring safety and quality in construction works
Law of Public Works and Government Tenders and Procurement: Regulates government contracts and procurement procedures, relevant if any party is a government entity or if the project involves public works
Foreign Investment Law: Important if any party is a foreign entity, as it regulates foreign business activities and investments in Saudi Arabia
Zakat, Tax and Customs Authority (ZATCA) Regulations: Governs tax implications and customs duties related to sale and construction activities
Labor Law: Relevant for construction agreements as it governs employment relationships and worker rights in construction projects
Environmental Law: Sets environmental protection requirements and standards that must be considered in construction projects
Municipality Regulations: Local regulations governing construction permits, zoning laws, and building requirements
Islamic Law (Sharia): Fundamental source of law in Saudi Arabia that governs all contracts and commercial dealings, ensuring compliance with Islamic principles
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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